MERCHANT MARINE

New Zealand Herald, Volume LXXIII, Issue 22493, 10 August 1936, Page 6

MERCHANT MARINE

AMERICAN PROJECT 200 SHIPS IN SEVEN YEARS COMMERCE AND DEFENCE [from our own correspondent] NEW YORK, July 15 The ocean mail contract is abolished. In its place a system of shipping subsidies has been endorsed, at the instance of President Poosevelt, by Congress, which comprehends the const riction in the next seven years of 200 passenger and cargo vessels, estimated to cost 350.000,000 dollars. They will be vessels of high speed and adaptable for use as naval auxiliaries.

The action of Congress, taken on the eve of the conference in London regarding British ships in the I'aeifie, leaves no doubt that the I nited States ntetids to intensify, rather than reduce, it*; competition in the Pacific. The intention of the new law, as stated in the preamble, is "to further the development; and maintenance of an adequate, well-balanced merchant marine, to promote the commerce of the United States and to aid in the national defence." Auxiliaries to Navy Those who favour Government aid For the merchant marine are almost fanatically convinced that it is essential to the well-being of the nation in peace and in war. Over a year ago the Prewj. dent asked Congress to pass the new law. Conflict of opinion among experts and other opposition delayed passage until the dying hours of Congress. The President's objective is that at least half the United States' foreign commerce shall be carried in American bottoms, manned by American officers and crews. He wants the ships built in American yards, to designs incorporating features that would enable them to be turned, with a minimum of eifnrt into auxiliary fighting ships. American products must, he s;ys, gain access to world markets under fair competitive conditions. American firms must not be left to the niercv of

foreign shipping companies, to raise passenger and freight rates to levels they might arrange by agreement among themsdves. Levels of Wages The United States Department of Commerce has made the following estimate of comparative levels of wages paid on cargo ships of 5000 tons or more, of the six principal registries: United States, 100; France, 74; Germany, 6S; Great Britain, G4; Italy, 58; Japan. 25. The new law, known as the Ship Subsidy Act, aims to replace, and progressively, the large numbei of obsolete and obsolescent ships now operating nniler the American with new, fast, economical vessels.